Allying with DenizBank,
MoneyGram International Inc.
) has once again fortified its roots in Turkey. Accordingly, the
company will provide its money transfer services in all the
bank's branches across the country.
Formed in 1997, DenizBank provides investment banking,
brokerage and leasing services to its clients. Expansion into
Turkey will now strengthen MoneyGram's footprint within Europe as
Further, MoneyGram will be able to offer its money transfer
services to all the citizens of Turkey through DenizBank's
platform, even in the absence of an account with the bank. Hence,
the company's partnership with such leading financial
institutions adds value and convenience to its existing customer
base and also helps in network expansion.
Growth prospects for MoneyGram is also validated by the World
Bank, who estimated Turkey's remittance market to be worth $1.0
billion. The citizens of Turkey send and receive money to and
from countries such as US, UK, France, Netherlands, Belgium,
Germany and Russia. Being the second largest provider of
international remittances, MoneyGram intends to grow by
delivering better value to its customers and utilizing the
potential offered by a market as large as Turkey.
Such alliances help MoneyGram unlock valued growth
opportunities through various self-service products such as
mobile, kiosk and online money transfer payment processes, while
ensuring safe and user-friendly payment solutions across the
globe. We believe that expansion through such organic strategies
is expected to drive MoneyGram's growth in the medium-
to-long-term. Such strategies also justify management's revised
top-line growth guidance of 7−10% for 2013, up from the prior
estimate of 6−9%.
MoneyGram's financials are expected to improve in the upcoming
quarters, driven by double-digit growth in money transfer
services and accelerated network expansion, thereby boosting cash
flow and brand value.
While MoneyGram carries a Zacks Rank #4 (Sell), strong peer
Fleetcor Tech Inc.
) holds a Zacks Rank #1 (Strong Buy). Other outperformers of the
financial sector include
CIT Group Inc.
Global Cash Access Holdings Inc.
), both of which carry a Zacks Rank #2 (Buy).
CIT GROUP (CIT): Free Stock Analysis Report
FLEETCOR TECH (FLT): Free Stock Analysis
GLOBAL CASH ACS (GCA): Free Stock Analysis
MONEYGRAM INTL (MGI): Free Stock Analysis
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